HomeMy WebLinkAbout2000.12.12_Worksession AgendaPUBLIC NOTICE OF THE MEETING OF THE
OWASSO CITY COUNCIL
TYPE OF MEETING: Special
DATE: December 12, 2000
TIME: 5 :30 p.m.
PLACE: Owasso City Mall
Lower Level Conference Room
Notice and agenda filed in the office of the City Clerk and posted on the City Hall bulletin board
at 4:00 p.m. on Thursday, December `i, 2000.
Marcia Boutwell, City Clerk
Call to Order
Mayor Williams
2. Update on Water :Luster Plan
Mr Carr
3, Discussion Relating to Carry -Over Budget
Ms Bishop
Attachment #3
Owasso City Council
December 12, 2000
Page 2
4. Discussion relating to Present City hall Building
Mr Mitchell
Attachment #4
5. Planning Session Follow-up
Mr Mitchell
6. report from City Manager
Mr Mitchell
7. Adjournment
MEMORANDUM
TO. TIIE HONORABLE MAYOR & CITY COUNCIL
CITY OF OWASS
FROM: MA CIA BOUT WELL
CITY CLERK
SUBJECT: COUNCIL WORIC SESSION SCHEDULE FOR I2 /I2 /00
DATE: October 6, 2000
Information and discussion relating to the following issues is planned for the City Council work
session on Tuesday, December 12th at 5:30 p.m. in the City Mall Lower Level Conference Doom.
I. Discussion Relating to Water Master Plan - Mr Carr and representatives from Montgomery
Watson will discuss the water master plane Please bring the notebook you received at the
council meelting on December 5th.
2. Discussion relaintg to Carry-Over Budget - Ms Bishop will give a brief overview of the
carry-over budget process. See memorandum under attachment #3.
3, Discussion Relat ng-Ato Curren-, City I 1gjl Building m r Mitchell will discuss possible uses
for the current city hall building once the new city hall has been completed and occupied,
4. Planning Session Follow-up m Mr Mitchell will discuss the recent City Council planning
sessions and, the next steps that will be taken in the process, The homework assignment from
your last session with Jill Hough (project ranking) should be brought to this meeting.
ATTACHMENT #3
MEMORANDUM
TO: HONORABLE MAYOR AND CITY COUNCIL
CITY OF OWASSO
FAOM: SHERRY BISHOP
FINANCE DIRECTOR
DATE: December 8, 2000
BACKGROUND:
In 1993, the City Council adopted a "Carryover Budget Policy". Each year since then, the City
Council has approved a "Carryover" supplemental appropriation. A "carryover" budget is a
concept wherein budgted, but unexpended, funds from one fiscal year may be re-budgeted
(apprpriated) to the next fiscal year. The goal of a carryover budget is to encourage economy
and effciency in the use of public funds. A memo to the City Council dated January 29, 1993
requesting adoption of the Carryover Budget Policy is attached for your information. The minutes
of the February 2, 1993 City Council meeting are also included.
Preliminary requests for carryover budget supplements are:
General Fund $397,923
Ambulance Capital Fund $154,453
Capital Improvements Fund $356,244
ATTACHMENTS.
Memo dated January 29, I993
City Council Minutes of February 2, 1993
TO: HONORABLE MAYOR AND CITY COUNCI
CITY OF OWASSO
FROM.. RO NEY J. RAY, CITY MANAGER
SUBJECT: REQUEST TO ALLOW A CARRY-OVER BUDGET
DATE: JANUARY 299 1993
BACKGROUND
Historically, one of the methods used in determining departmental appropriations has been to
benchmarch new budget appropriations against the previous years expenditures. This
philosophy generally resulted in the departmental attitude of "spend it or lose it". In an
effort to encourage sound budget management practices, the staff has tedermined that a
carry-0ver budget would be consistent with the current management philosophy that
encourages new and innovative ideas.
If department directors knew their savings would be available for use in a subsequent budget
year, I believe it would help to promote not only some increased efficiencies, but also some
long-range planning by departments based on their ability to save money over a multi-year
time period for planned, large expenditures.
Initially, we thought about develping a long, detailed policy relating to this carry-over
budget request. However, after several meetings with staff, it has been determined that the
best approach is to ask the Council to allow the budget process to include carry-over funds
effective wtih the next budget (GY '93-'94). Carry-over funding requestes could be in the
form of a request for a specific expendiure or could simply be shown as a "savings" for a
future, planned purchase. Regardless of how it is listed, all buget items still require
justification to the City Manager and approval by the City Council.
In seeking ways to promote more responsible and accountable top level management, I
believe this approach will produce substantial results that are immediate in nature. If you
have any questions regarding this proposal, please contact Sherry Bishop or me,
RECOMMENDATION
Staff recommends Council approva.1 of the carry-over budget practice effective with the FY
1993-94 budget process,
Owasso City Council February 2, 1993
projections, increasing revenue by $2052, wich covers salaries and wages and related expenses,
plus a one percent administrative cost.
Jojn Phillips moved to approve the amendment to the FY92-93 General Fund Budget. Motion
was seconded by Jason Gittelman.
AYE: Phillips, Gittelman, Randolph, Dmalley, Marlar
NAY: None
Motion Carried 5-0.
ITEM 13: CONSIDERATION AND APPROPRAITE ACTION RELATING TO A
REQUEST FOR COUNCIL ADOPTION OF A CARRY-OVER BUDGET
POLICY
Mr Ray brought a request before the Council to allow the budget process to include carry-over
funds effective with the next fiscal year budget. He stated that each request to carry over funds
would be reviewed with justification required. It is felt that a carry-over policy would promote
some increased efficiencieas and allow deparmtnets some latitude in long-range planning by being
able to save for a future, larege expenditure. Following discussion, John Phillis moved to
approve the request for Council to adopt a carry-over budget policy. Motino was seconded by
Jim Smalley.
AYE: Phillips, Smalley, Gittelman, Marlar
NAY: Randoph
Motion carried 4-1
ITEM 14: CONSIDERATION AND APPROPRIATE ACTION RELATING TO AN
AGREEMENT FOR THE USE OF POLE LINE FACILITIES BETWEEN
PUBLIC SERVICE OF OKLAHOMA AND THE CITY OF OWASSO
This item was presented by Mr Ray. Staff has developed a new school zone warning system
with flashing warning lights for the 76th Street North and Birch Street intersection in response
to containing problems in that area. PSO has been asked to allow the use of their power poles
for carring wire to the lights, and has agreed to the use provided a written agreement between
the City and PSO is executed. the proposed agreement provided for a power line to be attached
to six poles at a total cost of sixty dollars per year. PSO will install the line on the the poles. If
the agreement is approved, Council must take action to approve an agreement each year the
poles are used.
6
ATTACHMENT #4
PETERS' APPRAISAL CO.
309 S. Adair Pryor, Oklahoma 74631
918/825-6767
Re: Appraisal Report # 99-06-076
Dear Sirs:
Pursuant to your request, I have prepared an appraisal report of the property captioned in the "Summary of
Pertinent Data", which is as follows.
The accompanying report is based upon a site inspection of the property, an investigation of the
subject neightborhood of influence, a review of sales, cost of construction, and income data for similar
commercial properties.
This appraisal has been made with particular attention paid to applicable value influencing economic
conditions and has been processed in accordance with nationally recognized appraisal guidelines.
The value conclusions stated herein are as of June 30, 1999 wich is the effective date as stated in the body
of the appraisal and contingeent upon the certiciation and limited condidtions attached.
Please do not hesiate to contact me if i can be of further assistance to you and that you for this
opportuety to be of service.
Respectfully submitted,
Eddie R. Peters
General Certified Appraiser
License #10577
SUPPARY OF PERTINENT DATA
OWNERS OF THE PROPERTY CITY OF OWASSO
APPRIASAL REQUESTED BY CITY OF OWASSO
LOCATION 207 S. CEDAR ST
BUILDING SIZE IMPROVED 8,200 SF
IMPROVEMENTS 11,199 SF BUILIDING PORTICO & PARKING
EFFECTIVE DATE OF THE APPRAISAL 6-30-99
PURPOSE OF THE APPRAISAL TO ESTMATE FAIR MARKET VALUE
RIGHTS APPRAISED FEE SIMPLE
HIGHEST AND BEST USE CURRENT USEAGE
ESTIMATE OF VALUE $275,000.00
AREA DESCRIPTION
The value of the real estate is dependent to a large extent on the location of the property and generally
depends upon the influence of the neighborhood. The terra "Neighborhood" refers to the area of influence
surrounding the subject property. The buildings suitability to its surroundings and its accessibility are also
important factors.
The subject is located in Tulsa County, in the city of Owasso, which is part of Northeastern Oklahoma.
This is a lame, well-populated, generally rolling wooded region often referred to as "Green Country". The
Green Country area is made up of 19 counties in Northeastern Oklahoma that have rolling, wooded terrain,
with rivers, lakes, and streams. The natural beauty of the area makes for a good tourism attraction and a
nice place to live. Low utility and industrial rates as well as its intercoastal waterway make it an area
attractive to industry as well.
Since location is usually tied to transportation and enemy demand, there is a relatively steady demand for
commercial retail as well as industrial buildings in the Northeastern Oklahoma area. This is a substantial
reason for Northeast Oklahoma remaining a major commercial market place over the years, especially for
manufacturing, businesses scattered across Northeastern Oklahoma.
Lakes in the area, such as Keystone, Oolagah, and Grand, provide various types of recreation, such as
fishing, hunting, picnicking, etc. Creeks in the area have crystal clear running water and provide various
kinds of recreation as well.
DESCRIPTION OF THE MROVEMENTS
Subject property is unproved with site concrete block building. Subject building is approximately
8,200 square feet, plus a 3,000 square feet covered service area for a total of approximately 11,199 square
feet. Subject improvements sit on approximately 1.1 acres of commercial land and have adequate parking,
Subject is considered to be good to average and displays "Pride of Ownership Functional utility is
food and subject is located in an area displaying good economic growth characteristics.
SITE DATA
This tract consists of approximately 49,500 square feet. It is near level with adequate drainage. Buildings,
parking, and walks existed as illustrated in attached photograph addendum at the time of appraisal.
Utilities available to the site appear to be natural gas, electric, water, sewer, telephone, and trash service.
Subject site appears to be located above the flood hazard area. In this report i have attached a copty of
Flood Map #--400210 0002 D, dated April 15th, 1992, for your review. To my knowledget this area of
Owasso has nevered flooded.
EASEMENTS
There are on-site utilities and road easements of record.
ZONING
The subject property is located within Owasso's Planning and Zoning Commission area and subject usage
appears to be within legal conformace of the law.
FLOOD HAZARD DATA
According to the Flood Management office of the Corporation of Engineers, the subject proerty is not
located within a 100 year flood hazard area. I ahve attached a copty of Map # 400210 0002 D, dated
April 15, 1992, for your review.
ENVIRONMENTAL DISCLAIMER
No evidence of hazardous materials was observed nor was any reported by the owner. We made a visual
inspection of the property and have filled out an inspection report. We are assuming that there are no
detrimental hazardous materials or environmental hazards on this property. If there are hazardous materials
or environmental hazards on this property this appraisal and the value reported herein are null and void.
We, as appriaiser, make no guarantees to the effects on property value as a resule of environmental
hazards. We recommend you, as interested party, make your determination of the properties
environmental condition.
STATEMENT OF HIGBEST AND BESTUSE
The definition of Highest and Best Use is as follows:
1. The reasonable and probable use that supports the highest present value of vacant land or improved
property, as defined, as of the date of the appraisal.
2. The reasonable probable and legal use of land or site as though vacant, found to be physically possible,
appropriatily supported, financially reasible and that results in the highest and best present land vlaue.
3. The most profitable use.
Implied in these definitions is that the determination of highest and best use takes into account the
contribution of a specific use to the community and community development goals as well as the benefits
of that use for individual property owners. Bence, in certain situations the highest and best use of land may
be for parks, greenbelt, preservation, conservation, wildlife habitats, and the like.
In any opinion, the subject property's highest and best use is its current use.
DEFINITION OF MARKET VALUE
The most probable price which a property should bring in a competivie and open market under all
conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeable and assuming
the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a
specified date and the passing of title from seller to buyer under conditions whereby: 1) buyer and seller are
typically motivated; 2) both parties are well informed or well advised and each acting in what he considers
his own best interest; 3) a reasonable time is allowed for exposure in the open market; 4) payment is made
in terms of cash in U.S. Dollars ir in terms of financial arragements comparable thereto; and 5) the price
represents the normal consideration for the property sold unaffectied by special or creative financing or
sales concessions* granted by anyone associated with the sale.
*Adjustments to the comparables must be made for special or creative financing or sales concessions. No
adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law
ina market area; these costs are readily identifiable since the seller pays these cost in virtually all sales
transactions. Special or creative financing adjustments can be made to the comparable property by
comparisons to financing terms offered by a tird party institutional leader that is not already involved in
the property transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of
the financing or concessions but the dollar amount of any adjustment should approximate the markets
reaction to the financing or concessions based on the appraiser's judgement.
COST APPROACH
ESTIMATED COST NEW:
Finished Area 8,200 SF @ $45.00 SF $369,000.00
Parking Area 3,000 @ $20.00 SF $60,000.00
SUBTOTAL $429,000.00
LESS:
Physical Depreciation @ 20% $-85,920.00
Functional Deprecation @ 20% $-85,920.00
Economic Depreciation @ 0% -0-
TOTAL DEPRECIATED VALUE OF IMPROVEMENTS $257,160.00
ADD
Land $60,000.00
TOTAL: $317,160.00
TOTAL ESTIMATED VALUE OF LAND AND IMPROVEMENTS VIA THE COST APPROACH
SAY:
THREE HUNDRED AND TWENTY THOUSAND AND 00-100
($320,000.00)
INCOME APPROACH
The Income Approach to the value in the accepted appraisal process suggests two methods of relating
renal to value. They are the Gross Rent Multiplier and the Net Income Capitalization Methods.
In theory, the Gross Rent Multiplier method of relating rents to value is quite possible. In practive, though,
it does present problems. For the Gross Rent Multiplier to warrant use in a particular appraisal, it must be
respresentative of a market pattern of several actual multiplier which have been sold and rented.
Furthermore, it is difficult to obtain detailed and reliable data of comparable rental proerties, which have
sold. As a rule, the technique of capitalizing net income is employed on income producing properties.
The capitalization net income process is as follows: the Property's gross annual estimated renal income
less all general and fixex expenses plus reserves leaves a net income which can be capitalized into value.
The net income divided by the reate of capitalization extracted from the current market for income
producing properties indicates a value by the income approahc.
OFFICE/WAREHOUSE FACILITIES AND RENTAL
8,200 SF @ 4.50 FT $36,900
LESS 5% VACANCY LOSS $-1,845
ADJUSTED GROSS INCOME $35,055.00
EXPENSES
TAXES $2,000
INSURANCE $1,200
MAINTENANCE $2,500
MANAGEMENT FEE OF 3% $1,052
TOTAL $6,752
ADJUSTED ANNUAL INCOME $28,303
CAPITALIZATION OF INCOME
CAPITALIZATION RATE
25 % Equitey Position @ 9.0 % = 2.25
75% Loan to Value @ 10.0% = 7.50
9.75 CAP RATE
$28,303 DIVIDED BY 9.75% = $290,287.17
SAY
TWO HUNDRED AND NINTY THOUSAND AND 00/100
($290,000.00)
COMPARATIVE APPROACH
In the Comparative Approach, information from recent sales in the area is weighed and adjusted to the
subject for a value indication; it is a correlation and analysis of the actual market in which the subject
property exists.
This technique in which the value is predicated upon prices paid in actual market transactions is
area for "operties similar
the subject. However, when limited information is available due to the type or demand, this approach is
developed as a check on the value indications by the other approaches.
We made a search of the area for recent comparable sales of similar commercial type properties. In my
study of the market to establish a value by the Comparative Approach, a range of transactions were
considered, Listed are some of the sales which were used as a basis for comparison.
MARKET DATA APPROACH
The following sales were inproved sales of various types of commercial businesses in the Northeast
Oklahoma region. There was a dearth of various commercial sales and zoning. The sales cited appeared to
be most comparative in improvements, location, etc.. to subject. Various improved sales were considered,
which were both superior to and inferior to the subject. Many sales were reviewed from Tulsa County
Commercial Real Estate Sales Report, Guffey's Journal, and Mayes County MLS for which detailed
information has not been provided. Additional information can be provided upon request if desired to
clarify the information this appraisal is based upon or to further illustrate the reseach used in arriving at the
conclusions of this appraiser.
I =I
CItY Of Owasso Projects
Sale;
October r
10/30/00
Original
Amended
Cost
Project
Total
Project
Estimate
budget
Ex nded
Contracts Estimate
Total
Streets.-
06th Street (Cedar to Main)
2,430,000
2,363,200
327,063
1,960,000
2,307,063
06 & Mingo Intersection
500,000
525,300
1,660
600,000
601,6 80
06 & 145 E Ave Intersection
775,000
703,600
960
1,165,000
1,165,960
N Main (1 st to 9th)
ROW 76 & Hwy 169 (Engr)
260,000
100,000
223,300
4,361
205,275
209,636
Street & Intersection Projects.-
1,365,000
100,000
18241,520
1,397,624
76,112 23,680
190,900
100,000
1,500,524
76 & 129 E Ave Intersection
116 & Garnett Intersection
06 & 123 E Ave Intersection
O6 (Main to Mingo)
Street Resurfacing Projects:
471,000
462,000
960,661
966,501
Atlanta (3rd to 11th)
Carlsbad (3rd to 7th) & Beaumont
129 E Ave (high School to 93)
11 Street (Main to Coder)
Facilities:
City Hall /Police Statlor,
38000,000
2,509,520
530,257
3,365,239 301,329
4,224,025
Community Center
200,000
171,593
97,705
97,705
Sports Parr.-
e
Parking Lot
150,000
124,700
06,779
60,779
Restroom
65,000
65,000
05,000
05,000
Pour -plea & Soccer Fields
205,000
265,000
.302,901
302,901
Adminis Lion.-
PrOJect Manager Salary
142,000
125,909-
126,909
Architect/Engineer Pee
562,171
620,473
73,205
693,670
Program Managornent Services Fee
236,000
139,665
57,273
196,930
Available:
Contingent Projc
262,000
262,000
2,
Total
9,903,000
9,999,000
e. 4,696959
3,906,004
CKY Of Owasso - Bond Projects Fund
Sales Tax/Capital Future Fund/Revenue Bonds
October 1997 Election
As of October
'Total - additional funding sources
Total all funding sources
750,000
600,000
90,000
105,000
165,000
750,000
600,000
90,000
1654000
1 85,000
1,010,0 00 3131080 00
$9,999,000 ry p12,797,967 $ X104350,467 2,447,499
Amended
Actual
Funding
Original
Estimate
Project
Dud ft
Revenue
to Date
Remaining
Dud et
Revenue Bond proceeds
7,460,000
7,450,669
7,450,669
(0)
Sales Tax & Capital Future Funds
2,170,000
2,173,519
1,634,019
337,500
Capital Improvements Fund
269,000
269,000
269,000
Interest (all funds)
100,000
1,096,559
796,559
300,000
`dotal - original funding sources
9,999,000
10,967,967
10,350,467
637,499
'Total - additional funding sources
Total all funding sources
750,000
600,000
90,000
105,000
165,000
750,000
600,000
90,000
1654000
1 85,000
1,010,0 00 3131080 00
$9,999,000 $12,797,967 $ 104350,467 2,447,499